BOX INC [BOX] Filings

10-Q 1 box-20240731.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2024


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-36805

Box, Inc.

(Exact name of registrant as specified in its charter)

    Delaware

    20-2714444

    (State or other jurisdiction of
incorporation or organization)

    (I.R.S. Employer
Identification No.)

900 Jefferson Ave.

Redwood City, California 94063

(Address of principal executive offices and Zip Code)

(877) 729-4269

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.0001 par value per share	BOX	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 31, 2024 the number of shares of the registrant’s Class A common stock outstanding was 143,228,163.

TABLE OF CONTENTS


	PART I – FINANCIAL INFORMATION	Page
Item 1.	Financial Statements (Unaudited)	5
	Condensed Consolidated Balance Sheets as of July 31, 2024 and January 31, 2024	5
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended July 31, 2024 and 2023	6
	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended July 31, 2024 and 2023	7
	Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Deficit for the Three and Six Months Ended July 31, 2024 and 2023	8
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended July 31, 2024 and 2023	10
	Notes to Condensed Consolidated Financial Statements	11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4.	Controls and Procedures	33
	PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	59
Item 5.	Other Information	59
Item 6.	Exhibits	60
	Signatures	61

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:

•

our future financial and operating results; including expectations regarding revenue, deferred revenue, billings, remaining performance obligations, gross margins, operating income, and net retention rate;

•

our ability to maintain an adequate rate of revenue and billings growth and our expectations regarding such growth;

•

our market opportunity, business plan and ability to effectively manage our growth;

•

the effects of global economic conditions on our business and the impact of foreign exchange rates on our business;

•

our ability to maintain profitability and expand or maintain positive cash flow;

•

our ability to achieve our long-term and short-term gross and operating margin objectives;

•

our ability to grow our remaining performance obligations;

•

our expectations regarding our revenue mix;

•

our ability to maintain, protect and enhance our brand and intellectual property;

•

costs associated with defending intellectual property infringement and other claims and the frequency of such claims;

•

our ability to attract and retain end-customers;

•

our ability to further penetrate our existing customer base and expand their use of our services;

•

our ability to displace existing products in established markets;

•

our expectations regarding timing of new products, product bundles and features;

•

our ability to expand our leadership position as a cloud content management platform;

•

our ability to timely and effectively scale and adapt our new and existing technology;

•

our ability to innovate new products and features and bring them to market in a timely manner and the expected benefits to customers and potential customers of our products;

•

our investment strategy, including our plans to further invest in our business, including investment in research and development, sales and marketing, public cloud hosting and our professional services organization, and our ability to effectively manage such investments;

•

our ability to expand internationally;

•

expectations about competition and its effect in our market and our ability to compete;

•

use of financial measures not calculated in accordance with accounting principles generally accepted in the United States;

•

our belief regarding the sufficiency of our cash, cash equivalents and our credit facilities to meet our working capital and capital expenditure needs for at least the next 12 months;

•

our expectations concerning relationships with third parties and our ability to realize the anticipated benefits therefrom;

•

our ability to attract and retain qualified employees and key personnel;

•

the effects of new laws, policies, taxes and regulations on our business;

•

management’s plans, beliefs and objectives, including the importance of our brand and culture on our business;

•

acquisitions of or investments in complementary companies, products, services or technologies and our ability to successfully integrate such companies or assets; and

•

any potential repurchase of our Class A common stock.

These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Quarterly Report on Form 10-Q to conform these statements to actual results or to changes in our expectations, except as required by law.

You should read this Quarterly Report on Form 10-Q and the documents that we reference in this Quarterly Report on Form 10-Q and have filed with the Securities and Exchange Commission (SEC) as exhibits to this Quarterly Report on Form 10-Q with the understanding that our actual future results, levels of activity, performance, and events and circumstances may be materially different from what we expect.

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

BOX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)


	July 31,			January 31,
	2024			2024

ASSETS
Current assets:
Cash and cash equivalents	$	406,620		$	383,742
Short-term investments		75,605			96,948
Accounts receivable, net		177,487			281,487
Deferred commissions		43,516			45,817
Other current assets		30,431			34,186
Total current assets		733,659			842,180
Operating lease right-of-use assets, net		88,453			99,354
Goodwill		76,773			76,750
Deferred commissions, non-current		58,464			63,541
Deferred tax assets		73,411			75,665
Other long-term assets		89,978			83,673
Total assets	$	1,120,738		$	1,241,163
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	$	44,076		$	52,737
Accrued compensation and benefits		33,189			36,872
Operating lease liabilities		25,662			26,812
Deferred revenue		483,987			562,859
Total current liabilities		586,914			679,280
Debt, net, non-current		371,824			370,822
Operating lease liabilities, non-current		82,173			94,165
Other liabilities, non-current		26,081			35,863
Total liabilities		1,066,992			1,180,130
Commitments and contingencies (Note 5)
Series A convertible preferred stock, par value of $0.0001 per share; 500 shares authorized, issued and outstanding as of July 31 and January 31, 2024		493,145			492,095
Stockholders’ deficit:
Class A common stock, par value $0.0001 per share; 1,000,000 shares authorized; 143,228 shares and 144,353 shares issued and outstanding as of July 31 and January 31, 2024, respectively		14			14
Additional paid-in capital		740,292			785,374
Accumulated other comprehensive loss		(10,659	)		(9,686	)
Accumulated deficit		(1,169,046	)		(1,206,764	)
Total stockholders’ deficit		(439,399	)		(431,062	)
Total liabilities, convertible preferred stock and stockholders’ deficit	$	1,120,738		$	1,241,163

See notes to condensed consolidated financial statements.

BOX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)


	Three Months Ended						Six Months Ended
	July 31,						July 31,
	2024			2023			2024			2023
Revenue	$	270,039		$	261,428		$	534,697		$	513,326
Cost of revenue		55,513			67,013			113,765			128,664
Gross profit		214,526			194,415			420,932			384,662
Operating expenses:
Research and development		65,445			63,316			128,118			125,834
Sales and marketing		95,235			88,605			187,908			174,815
General and administrative		33,566			32,619			66,619			65,803
Total operating expenses		194,246			184,540			382,645			366,452
Income from operations		20,280			9,875			38,287			18,210
Interest and other income, net		4,699			3,293			8,557			5,611
Income before provision for income taxes		24,979			13,168			46,844			23,821
Provision for income taxes		4,483			2,377			9,126			4,680
Net income	$	20,496		$	10,791		$	37,718		$	19,141
Accretion and dividend on series A convertible preferred stock		(4,310	)		(4,307	)		(8,550	)		(8,531	)
Undistributed earnings attributable to preferred stockholders		(1,845	)		(740	)		(3,313	)		(1,209	)
Net income attributable to common stockholders	$	14,341		$	5,744		$	25,855		$	9,401
Net income per share attributable to common stockholders
Basic	$	0.10		$	0.04		$	0.18		$	0.07
Diluted	$	0.10		$	0.04		$	0.18		$	0.06
Weighted-average shares used to compute net income per share attributable to common stockholders
Basic		144,070			144,248			144,678			144,490
Diluted		146,525			150,007			147,634			150,218

See notes to condensed consolidated financial statements.

BOX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)


	Three Months Ended						Six Months Ended
	July 31,						July 31,
	2024			2023			2024			2023
Net income	$	20,496		$	10,791		$	37,718		$	19,141
Other comprehensive income (loss):
Net foreign currency translation gain (loss)		1,498			(501	)		(264	)		(290	)
Other		(361	)		(14	)		(709	)		(179	)
Other comprehensive income (loss):		1,137			(515	)		(973	)		(469	)
Comprehensive income	$	21,633		$	10,276		$	36,745		$	18,672

See notes to condensed consolidated financial statements.

BOX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT

(In thousands)

(Unaudited)


	Three Months Ended July 31, 2024
	Series A Convertible Preferred Stock				Class A Common Stock						Additional Paid-In			Accumulated Other Comprehensive			Accumulated			Total Stockholders'
	Shares		Amount		Shares			Amount			Capital			Loss			Deficit			Deficit
Balance as of April 30, 2024		500	$	492,585		145,588		$	15		$	803,449		$	(11,796	)	$	(1,189,542	)	$	(397,874	)
Issuance of common stock under employee equity plans, net of shares withheld for employee payroll taxes		—		—		1,521			—			(10,674	)		—			—			(10,674	)
Stock-based compensation related to stock awards		—		—		—			—			53,783			—			—			53,783
Accretion and dividend on series A convertible preferred stock, net of dividends paid		—		560		—			—			(4,310	)		—			—			(4,310	)
Repurchases of common stock		—		—		(3,881	)		(1	)		(101,956	)		—			—			(101,957	)
Other comprehensive income		—		—		—			—			—			1,137			—			1,137
Net income		—		—		—			—			—			—			20,496			20,496
Balance as of July 31,2024		500	$	493,145		143,228		$	14		$	740,292		$	(10,659	)	$	(1,169,046	)	$	(439,399	)


	Three Months Ended July 31, 2023
	Series A Convertible Preferred Stock				Class A Common Stock						Additional Paid-In			Accumulated Other Comprehensive			Accumulated			Total Stockholders'
	Shares		Amount		Shares			Amount			Capital			Loss			Deficit			Deficit
Balance as of April 30, 2023		500	$	490,464		144,828		$	14		$	822,366		$	(7,019	)	$	(1,327,446	)	$	(512,085	)
Issuance of common stock under employee equity plans, net of shares withheld for employee payroll taxes		—		—		1,372			—			(21,416	)		—			—			(21,416	)
Stock-based compensation related to stock awards		—		—		—			—			52,148			—			—			52,148
Accretion and dividend on series A convertible preferred stock, net of dividends paid		—		557		—			—			(4,307	)		—			—			(4,307	)
Repurchases of common stock		—		—		(2,155	)		—			(61,580	)		—			—			(61,580	)
Other comprehensive loss		—		—		—			—			—			(515	)		—			(515	)
Net income		—		—		—			—			—			—			10,791			10,791
Balance as of July 31,2023		500	$	491,021		144,045		$	14		$	787,211		$	(7,534	)	$	(1,316,655	)	$	(536,964	)

See notes to condensed consolidated financial statements.

BOX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT

(In thousands)

(Unaudited)


	Six Months Ended July 31, 2024
	Series A Convertible Preferred Stock				Class A Common Stock						Additional Paid-In			Accumulated Other Comprehensive			Accumulated			Total Stockholders'
	Shares		Amount		Shares			Amount			Capital			Loss			Deficit			Deficit
Balance as of January 31, 2024		500	$	492,095		144,353		$	14		$	785,374		$	(9,686	)	$	(1,206,764	)	$	(431,062	)
Issuance of common stock under employee equity plans, net of shares withheld for employee payroll taxes		—		—		4,129			1			(6,753	)		—			—			(6,752	)
Stock-based compensation related to stock awards		—		—		—			—			109,417			—			—			109,417
Accretion and dividend on series A convertible preferred stock, net of dividends paid		—		1,050		—			—			(8,550	)		—			—			(8,550	)
Repurchases of common stock		—		—		(5,254	)		(1	)		(139,196	)		—			—			(139,197	)
Other comprehensive loss		—		—		—			—			—			(973	)		—			(973	)
Net income		—		—		—			—			—			—			37,718			37,718
Balance as of July 31, 2024		500	$	493,145		143,228		$	14		$	740,292		$	(10,659	)	$	(1,169,046	)	$	(439,399	)

	Six Months Ended July 31, 2023
	Series A Convertible Preferred Stock				Class A Common Stock						Additional Paid-In			Accumulated Other Comprehensive			Accumulated			Total Stockholders'
	Shares		Amount		Shares			Amount			Capital			Loss			Deficit			Deficit
Balance as of January 31, 2023		500	$	489,990		144,301		$	14		$	818,996		$	(7,065	)	$	(1,335,796	)	$	(523,851	)
Issuance of common stock under employee equity plans, net of shares withheld for employee payroll taxes		—		—		3,558			—			(25,835	)		—			—			(25,835	)
Stock-based compensation related to stock awards		—		—		—			—			108,056			—			—			108,056
Accretion and dividend on series A convertible preferred stock, net of dividends paid		—		1,031		—			—			(8,531	)		—			—			(8,531	)
Repurchases of common stock		—		—		(3,814	)		—			(105,475	)		—			—			(105,475	)
Other comprehensive loss		—		—		—			—			—			(469	)		—			(469	)
Net income		—		—		—			—			—			—			19,141			19,141
Balance as of July 31, 2023		500	$	491,021		144,045		$	14		$	787,211		$	(7,534	)	$	(1,316,655	)	$	(536,964	)

BOX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Six Months Ended
	July 31,
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	37,718		$	19,141
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		9,984			24,483
Stock-based compensation expense		106,273			100,623
Amortization of deferred commissions		26,538			27,369
Other		2,402			1,705
Changes in operating assets and liabilities:
Accounts receivable, net		103,301			96,309
Deferred commissions		(19,288	)		(17,319	)
Operating lease right-of-use assets, net		13,350			15,850
Other assets		(595	)		(1,227	)
Accounts payable, accrued expenses and other liabilities		(14,399	)		(6,136	)
Operating lease liabilities		(15,326	)		(24,186	)
Deferred revenue		(82,456	)		(79,006	)
Net cash provided by operating activities		167,502			157,606
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of short-term investments		(56,455	)		(65,745	)
Maturities of short-term investments		75,896			50,000
Sales of short-term investments		3,567			—
Purchases of property and equipment		(1,674	)		(2,000	)
Proceeds from sales of property and equipment		5,991			1,253
Capitalized internal-use software costs		(11,677	)		(8,377	)
Other		—			(190	)
Net cash provided by (used in) investing activities		15,648			(25,059	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchases of common stock		(138,686	)		(104,906	)
Payments of dividends to preferred stockholders		(7,500	)		(7,443	)
Proceeds from exercise of stock options		15,353			795
Proceeds from issuances of common stock under employee stock purchase plan		15,677			16,045
Employee payroll taxes paid for net settlement of stock awards		(37,783	)		(42,026	)
Principal payments of finance lease liabilities		(2,141	)		(18,952	)
Other		(2,022	)		(3,570	)
Net cash used in financing activities		(157,102	)		(160,057	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(2,589	)		(4,836	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		23,459			(32,346	)
Cash, cash equivalents, and restricted cash, beginning of period(1)		384,257			429,040
Cash, cash equivalents, and restricted cash, end of period(1)	$	407,716		$	396,694

(1)

Restricted cash is included in other current assets in the condensed consolidated balance sheets for the periods presented.

See notes to condensed consolidated financial statements.

BOX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Description of Business and Basis of Presentation

Description of Business

We were incorporated in the state of Washington in April 2005, and were reincorporated in the state of Delaware in March 2008. Box provides a leading cloud content management platform that enables organizations of all sizes to securely manage cloud content while allowing easy, secure access and sharing of this content from anywhere, on any device.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements, which include the accounts of Box and its wholly owned subsidiaries, have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and applicable rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all of the financial information and footnotes required by GAAP for complete financial statements.

In the opinion of our management, the unaudited condensed consolidated financial statements include all adjustments necessary for the fair presentation of our balance sheets, statements of operations, statements of comprehensive income, statements of convertible preferred stock and stockholders' deficit, and the statements of cash flows for the interim periods, but are not necessarily indicative of the results to be expected for any subsequent quarter or for the year ending January 31, 2025. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended January 31, 2024, which was filed with the SEC on March 11, 2024.

Certain prior period amounts reported in our condensed consolidated financial statements have been reclassified to conform to the current year presentation. Such reclassifications did not affect revenue, income from operations, or net income.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make, on an ongoing basis, estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ from these estimates. Such estimates include, but are not limited to, the fair value of acquired intangible assets, the useful lives of intangible assets, the incremental borrowing rate we use to determine our lease liabilities, and the valuation allowance of deferred income tax assets. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

Certain Risks and Concentrations

Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, and accounts receivable. Although we deposit our cash with multiple financial institutions, our deposits, at times, may exceed deposit insurance coverage limits.

We sell to a broad range of customers. Our revenue is derived primarily from the United States across a multitude of industries. Accounts receivable are derived from the delivery of our services to customers primarily located in the United States. We accept and settle our accounts receivable using credit cards, electronic payments and checks. A majority of our lower dollar value invoices are settled by credit card on or near the date of the invoice. We do not require collateral from customers to secure accounts receivable. We believe collections of our accounts receivable are probable based on the size, industry diversification, financial condition and past transaction history of our customers. As of July 31, 2024 and January 31, 2024, no single customer accounted for more than 10% of total accounts receivable. No single customer represented over 10% of our revenue for the three and six months ended July 31, 2024 and 2023.

We serve our customers and users from public cloud hosting operated by third parties. In order to reduce the risk of down time of our subscription services, we have public cloud hosting services established in various locations in the United States and abroad and we have internal procedures to restore services in the event of disaster. Even with these procedures for disaster recovery in place, our cloud services could be significantly interrupted during the implementation of the procedures to restore services.

Geographic Locations

For the three and six months ended July 31, 2024, revenue attributable to customers in the United States was 65% and revenue attributable to customers in Japan was 22%. For the three and six months ended July 31, 2023, revenue attributable to customers in the United States was 66% and 67%, respectively and revenue attributable to customers in Japan was 21%.

As of July 31, 2024 and January 31, 2024, substantially all of our property and equipment was located in the United States.

Summary of Significant Accounting Policies

Derivative Instruments and Hedging

We measure derivative instruments at fair value and recognize them as either assets or liabilities on our condensed consolidated balance sheets. We record changes in fair value of derivative instruments designated as cash flow hedges in other comprehensive income (loss). When the hedged transaction affects earnings, we subsequently reclassify the net derivative gain or loss within other comprehensive income (loss) into the same line as the hedged item on the condensed consolidated statements of operations to offset the changes in the hedged transaction. Derivatives not designated as hedging instruments are adjusted to fair value through interest and other income, net, on our condensed consolidated statements of operations in the period during which changes in fair value occur.

There have been no other material changes to our significant accounting policies and estimates during the six months ended July 31, 2024 from those disclosed in our Form 10-K for the year ended January 31, 2024. Additionally, we have a single reporting segment and all required segment information can be found in the condensed consolidated financial statements.

Recently Adopted and Issued Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 and requires retrospective application to all prior periods presented in the financial statements. We are currently evaluating the impact of the new standard on our condensed consolidated financial statement disclosures.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires greater disaggregation of tax information in rate reconciliation and income taxes paid by jurisdiction. This ASU is effective for fiscal years beginning after December 15, 2024. We are currently evaluating the impact of the new standard on our condensed consolidated financial statement disclosures.

Note 2. Revenue

Deferred Revenue

Deferred revenue was $502.1 million and $586.9 million as of July 31, 2024 and January 31, 2024, respectively. During the three months ended July 31, 2024 and 2023, we recognized $222.5 million and $219.1 million of revenue that was included in the deferred revenue balance as of April 30, 2024 and 2023, respectively. During the six months ended July 31, 2024 and 2023, we recognized $397.5 million and $379.8 million of revenue that was included in the deferred revenue balance as of January 31, 2024 and 2023, respectively.

Transaction Price Allocated to the Remaining Performance Obligations

As of July 31, 2024, we had remaining performance obligations from contracts with customers of $1.3 billion. We expect to recognize revenue on 57% of these remaining performance obligations over the next 12 months, with the substantial majority of the remaining balance expected to be recognized within 24 months.

Note 3. Fair Value of Financial Instruments

Fair Value Measurements of Assets and Liabilities Measured at Fair Value on a Recurring Basis

We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. We define fair value as the exchange price that would be received from selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:

•

Level 1—Observable inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

•

Level 2—Observable inputs are quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices which are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments.

•

Level 3—Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. These inputs are based on our own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation.

Financial assets subject to the fair value disclosure requirements are included in the table below. All of our financial assets are classified as Level 1. The estimated fair value of cash equivalents and short-term investments were as follows (in thousands):


	July 31,		January 31,
	2024		2024
Cash equivalents:
Money market funds	$	84,437	$	189,268
Total cash equivalents		84,437		189,268
Short-term investments:
U.S. treasury securities		75,605		61,484
Non-U.S. government issued securities		—

BOX INC [BOX] Filings
BOX INC [BXNCP] Filings
10-Q	[2024-08-30]
10-Q	[2024-05-30]
10-K	[2024-03-11]
10-Q	[2023-12-06]
10-Q	[2023-08-31]
10-Q	[2023-05-31]
10-K	[2023-03-13]
10-Q	[2022-12-02]
10-Q	[2022-08-31]
10-Q	[2022-06-02]
10-K	[2022-03-16]
10-Q	[2021-12-03]
10-Q	[2021-09-03]
10-Q	[2021-06-04]
10-K	[2021-03-19]
10-Q	[2020-12-07]
10-Q	[2020-09-04]
10-Q	[2020-06-04]
10-K	[2020-03-19]
10-Q	[2019-12-06]
10-Q	[2019-09-06]
10-Q	[2019-06-06]
10-K	[2019-03-20]
10-Q	[2018-12-06]
10-Q	[2018-09-07]
10-Q	[2018-06-08]
10-K	[2018-03-22]
10-Q	[2017-12-08]
10-Q	[2017-09-08]
10-Q	[2017-06-09]
10-K	[2017-03-24]
10-Q	[2016-12-08]
10-Q	[2016-09-07]
10-Q	[2016-06-09]
10-K	[2016-03-30]
10-Q	[2015-12-14]
10-Q	[2015-09-11]
10-Q	[2015-06-12]
10-K	[2015-03-30]
S-1	[2014-03-24]

BOX INC [BOX] Filings

BOX INC [BXNCP] Filings